BUSINESSES have welcomed plans for a student development in the centre of Stockton.

They believe the proposed flats on Yarm Lane will help regenerate the “deteriorating” area, while an influx of students would bring extra business to the town.

The existing building, which accommodates a hairdressing salon, fishing tackle shop and takeaway, would be demolished to make way for the 177 flats and two retail units.

Tony Wattis, agents for the developers, told the Gazette: “The proposed scheme has been extremely well received by the Stockton Town Centre business community, with numerous letters of support.

“This is in sharp contrast to other student schemes currently being evaluated which have attracted significant objection. If approved at planning committee on October 15, the scheme could provide the kick-start for regeneration in an important gateway location to Stockton High Street.”

Adam Hussein, from The Bite Centre on Yarm Lane, believes the conversion will benefit the area. “I believe that more students will generate more business,” he said.

And Michael Livingstone-Evans from the Swallow Hotel said: “The town is in need of individuals to take the risk to improve existing rundown property.”

But Durham University has objected to the plans, stating that, since the building of 382 rooms on Bridge Road, there is a significant surplus of accommodation in the private sector for second and third year students at Queen’s Campus.

A spokesman said: “In addition, if permission were to be granted, the university is concerned at the potential detrimental impact on the existing housing market and also the future use of the building when, due to lack of demand, the accommodation cannot be let to students.”

Concerns have also been raised in relation to traffic and parking in the area.